BNP's Saywell Feels Markets Underestimate the Fed

The transcript discusses the market's underestimation of potential Fed tightening and the implications of a surprise rate hike. It explores the impact of yield curves on the FX market, highlighting the disconnect between major currencies and risk-linked currencies like the Australian and New Zealand dollars. The potential disruption from a Fed rate hike is examined, with emphasis on the importance of Fed guidance. The discussion also covers Japan's monetary policy and its interaction with global markets, stressing the significance of policy divergence.

In what way does the speaker suggest that the Australian and New Zealand dollars are linked to global risk?

What does the speaker imply about the importance of the Fed compared to the ECB and the Bank of Japan in the current environment?